Which of the following would be least likely classified as a direct cost of a business segment?
A)Shipping
B)Sales commissions
C)Rent
D)Direct material

Question

Quizplus · Accepted Answer

Rent is an indirect cost that is not directly related to the production or sale of goods or services within a business segment. Shipping, sales commissions, and direct materials are all direct costs that can be directly linked to a specific business activity or product.

Which of the Following Would Be Least Likely Classified as a Direct